Health insurance can help you be financially prepared for the adversities. But do you know how much cover is enough?

Many people purchase a cheap health insurance planthinking the sum insured will automatically double in the next five years. However, given the current medical inflation rate, all the best financial planners advise getting a minimum health cover between INR 5 to 10 lakh.

The exact amount you need depends on a lot of factors. Here is a quick checklist to help you evaluate how much health insurance cover would be adequate for your individual needs:

Family History: Check your family history for any inherited diseases before choosing an insurance plan. If you are susceptible to one or more health problems, then you fall into the high-risk category and should get a comprehensive health cover accordingly.

Place of Residence: Medical expenses differ from place to place. For instance, if you live in a metro city, your medical expenses are likely to be higher than someone living in a smaller city. Moreover, it puts you at a higher risk of developing lifestyle diseases. Your health insurance plan needs to cover the added aspects.

Age: The earlier you get an insurance plan the better. You can avail a good discount of premium in your 20s or early 30s.The premium rate increases with age. Besides, if you are above 45, your application is likely to be rejected or sold at an inflated premium since the health risks involved are higher.

Number of Dependents: Your insurance plan should also cover those dependent on you (wife/kids). In such cases, you can opt for comprehensive family health care coverage that allows you the convenience to save pocket expense.

Lifestyle: If you have a sedentary work style, poor eating habits, and body weight issues, or suffer from a lifestyle disorder like hypertension, then you are at a higher risk of developing major health issues later in life. Take all of this into account before settling on a particular plan.

Hospital Preference: All hospitals fall under different grades, which directly affects the charges to be incurred for the same treatment. So, your health insurance coverage must be calculated as per the probable expenses, depending upon the average grade of the network hospitals in your vicinity.

Annual Income: Your health insurance cover is directly proportional to your yearly income. You must be able to pay the premium in order to avail the benefits. So, consider all the factors mentioned above and then choose the best affordable plan. You can increase the extent of cover and benefits later as your income increases in the future.

Tax Benefits: You can also get a health insurance plan solely for the purpose of tax benefits. Section 80D allows exemption up to INR 25,000 per financial year for your health insurance payments, and up to INR 30,000 if you are 60 years of age or above. In case a senior citizen is dependent on you for care, then you can also avail an additional exemption of up to INR 30,000.

Keep these points in mind while choosing your insurance plan and get the emergency care you deserve without worrying about the frightening question, ‘How am I going to pay the bill?’

To learn more about health insurance plans, contact our advisor at 5nance.com today!

Financial planning is a process that provides you with (a) A scientific way to manage your finances. It helps individuals make calculated provisions to align their future goals and requirements. and (b) a personal goal plan that enables users to realize objectives for their future.
5nance makes use of an innovative financial planning software to analyze your existing portfolio and set up plans to meet those objectives.
We offer financial planning tools and services like budgeting, investment planning, insurance planning, cash management, retirement planning and real estate planning.

Who is a financial planner? How can 5nance.com help you plan better?

A financial planner is an expert who advises users to manage money in a methodical manner. Our personal finance software plays the role of a budget planner and helps users plan their goals and make goal based investments..
Our integrated financial accounting software helps users identify their financial requirements, present priorities, future needs and products that are most suitable to meet their needs.
We provide tools that allow our users to create monthly investment plans, track spending patterns and optimize savings.

How does 5nance.com create an individual’s personal financial plan?

As a personal budget software, we take care of user’s money management needs such as budgeting, expenses tracking and savings optimization.
You can expect comprehensive financial planning and best investment recommendations from our investor friendly portal.
We provide real time portfolio tracking and put out timely alerts and research calls to optimize returns on their investments.
Online automated advisory and services offered by us is absolutely free of cost. Users can make investment through our portal without incurring any expenditure.

How is 5nance platform different from others?

Like a personal budgeting software, 5nance.com offers a platform that enables users to go for budgeting, planning, advisory, portfolio tracking and investments in just few clicks.
We allow users to link their bank accounts with our portal to facilitate ease of operation.
Users can execute financial transactions and get prudent advisory at zero cost.

All rights reserved. Reproduction of any content in any form, including but not limited to articles, tips, photos, videos, designs, graphs or any form of representations, in whole or in part, in any form or any medium without explicit written consent of Innovage Fintech Private Limited is prohibited.

Innovage Fintech Private Limited is registered with Association of Mutual Funds in India (AMFI) as a mutual fund distributor having ARN no. 87155 and is also holding a valid Corporate Agent (CA) registration with Insurance Regulatory and Development Authority of India (IRDAI) registration no. CA0339. Any recommendation provided by Innovage Fintech Private Limited to the customers on mutual funds is
incidental to its primary activity. For products other than mutual fund, no recommendation is provided in any form by Innovage Fintech Private Limited.
Advisory Services on 5nance.com is provided by Innovage Investment Advisers Private Limited, a SEBI registered Investment Adviser having registration no. INA 000003809 (Valid till 12.11.2020).